Consumer spending posts solid gains in June

Consumer spending rose by a solid 0.4 percent in June, while a key gauge of inflation increased at an annual pace of 2.2 percent for a second straight month, the strongest back-to-back gains in six years.

The Commerce Department says the gain in spending followed an even stronger 0.5 percent rise in May, which was revised from a 0.2 percent initial estimate. Incomes rose a solid 0.4 percent in June, matching the May increase.

The 2.2 percent rise in prices over the past 12 months matched the 12-month gain in May. Inflation over the past four months has been at 2 percent or slightly above 2 percent, which is the target the Federal Reserve seeks to achieve for price gains.